Resource Wendy\'s Over the Last Several Years,

Resource

Wendy's

Over the last several years, Wendy's has been facing a number of different challenges. Part of the reason for this, is their profit margins are being squeezed by: intense competition and declining market share. Evidence of this can be seen by looking no further than, their recent earnings report as the company experienced a loss of $1.4 million dollars for the first quarter of this year. During the conference call, executives indicated that they are looking at strategic options for divesting itself of the Arby's chain. ("No Beef with Wendy's Earnings," 2011) This is significant, because it is illustrating how the corporation must use different intermediaries to achieve this objective. To fully understand how this is taking place requires: examining two lenders they are using, two investment banks that they are utilizing to issue equity securities, looking at the roles these intermediaries are playing, what government entities are regulating the securities that are issued by the company and the laws that are governing the industry. Once this occurs, it will provide the greatest insights as to how these different organizations are affecting Wendy's and the decisions that they are making.

Identify two lenders the organization uses.

The two primary lenders that Wendy's is currently using include: JP Morgan and Credit Suisse. This is significant, because these financial institutions have played a major role in helping the company to offer securities that are directly addressing its needs through: a wide variety of bond offerings. (Adamy, 2007) (Carelton, 2009)

Identify the investment bank the organization uses to issue stock.

The two investment banks that the company is utilizing to issue stock and conduct equity security offerings are: UBS as well as JP Morgan. This is important, because these organizations play a major role in helping to raise working capital for the corporation and advising them about strategic decisions that need to be taken for the company itself. ("Wendy's Arby's Group," 2011) (Carelton, 2009)

Identify and discuss the role these intermediaries play for the organization.

The role that these intermediaries are playing is to provide Wendy's with advice as to when they should conduct spin offs and secondary offerings. At the same time, they are helping management to determine how and when various debt securities should be issued to increase their overall bottom line.

Discuss which government entities regulate securities this organization issues.

The government entities that regulate the kind of securities that are offered by the company include: the Securities and Exchange Commission (SEC). This is important because, it is showing the role that they play in helping to ensure that all information is transparent and in compliance with various securities laws. ("The Laws that Govern the Securities Industry," 2011)

The Laws that Govern the Securities Industry